A Shifting Balance of Power Companies are normally free to structure theirrelationships as they see fit. This freedomis primarily constrained by competitionlaw, which intervenes only in specific This reflects an important economic reality – for example,UTPs3imposed by buyers or buyer alliances on foodmanufacturers are unlikely to be absorbed entirely at thatlevel. Instead, such costs can be passed upstream and canultimately negatively impact farmers. By addressing UTPs Early Assessment: Encouraging Signs but In December 2025, the European Commission publishedits report on the evaluation of the UTP Directive. While theDirective has only been fully implemented for a relatively However, the EU has taken a markedly different stance inthe case of farmers and farmer cooperatives. Recognisingstructural imbalances and persistent inequalities in bargainingpower, in 2019 the EU adopted Directive (EU) 2019/633 At the same time, the evaluation highlighted severalshortcomings and areas for improvement. Against this The UTP Directive is being revised, with the Commissioncurrently procuring an impact assessment to support this, and The call identifies two main areas where revision may bewarranted: (i) strengthening enforcement and reducingsuppliers’ “fear factor” and (ii) addressing uneven A Targeted Intervention: Scope and The UTP Directive introduces a regulatory frameworkthat departs from traditional competition law by directlyaddressing contractual imbalances. It establishes a list ofunfair trading practices (UTPs), divided into so-called “black” A New Layer of Enforcement: Cross-border Separately, a significant recent development is the adoptionof Regulation (EU) 2026/697, published on 20 March 2026,which establishes a framework for cooperation among The Directive applies where there is a perceived imbalancebetween supplier and buyer, based on predefined turnoverbands.1In essence farmers and their cooperatives are given The Regulation aims to ensure more effective enforcementby facilitating coordination and information-sharing acrossMember States. It reflects a broader recognition that unfair Beyond Farmers: Indirect Protection and While the UTP Directive is primarily aimed at protectingfarmers and their cooperatives, its effects extend furtherdown the supply chain. Notably, it also offers protection to The Broader Debate: What Comes Next? Contacts These developments raise important questions for the future Gerard McElweePartner, BrusselsT +32 2 627 7628E gerard.mcelwee@squirepb.com Should protection remain limited to suppliers with turnoverbelow €350 million,4particularly in light of increasingconsolidation and the growing influence of large retailalliances? Is the agri-food sector unique in warranting suchintervention, or could similar imbalances justify extending Maria-Magdalena Markova Associate, BrusselsT +32 499 68 93 31E maria-magdalena.markova@squirepb.com As the balance of power between suppliers and buyerscontinues to evolve, so too will the regulatory landscape. Theinteractions between these actors, set against the backdrop